Bahrain: Tough market conditions affect Trust Re's 1H results
Source: Middle East Insurance Review | Oct 2016
Bahrain-headquartered Trust Re achieved GWP of US$290.6 million for the six-month period ended 30 June 2016, a decline of 13% compared to $328.6 million for the same period in 2015. The Group’s profits fell by 59% y-o-y to $13.2 million during the same period.
In a statement, Trust Re said: “The half-year result in 2015 was influenced by a higher investment income, a significant proportion of which was driven by a one-off gain on sale of shares.”
The Group reported a combined ratio of 93.6% for the first half of 2016, compared to 92.3% for the corresponding period last year. Net underwriting profit dropped by 29.2% due to prolonged soft market conditions.
Total shareholder’s equity grew by 1.7% compared to the previous year end to reach $437.1 million at 30 June 2016.
Commenting on the first-half performance for 2016, Trust Re Group CEO & Director, Mr Fadi AbuNahl, said: “We continue to operate in a persistently challenging environment. This has negatively impacted our bottom line as at 30 June 2016. However, as an A-rated reinsurer, we are proud of our disciplined risk selection, strong reserving philosophy, and embedding of ERM into business as usual, all of which have enabled us to show a profitable result for the period.”